MOSCOW Feb 11 Russia's central bank has
withdrawn the licences of two small Moscow-based banks, part of
its widening campaign to clean up the banking system and crack
down on money laundering.
Russia has more than 900 banks, mostly small, and many are
suspected of servicing the shadow economy. Since taking up her
position as central bank head last year, Elvira Nabiullina, has
made it clear she wants to tighten banking supervision and shore
up large-scale capital flight to boost the flagging economy.
The central bank said on Tuesday it had withdrawn Eurotrust
bank's licence because of a failure to meet obligations to its
creditors and depositors, and to create sufficient reserves to
cover potential losses on loans.
LINK-bank also failed to create provisions against risk and
both banks were involved in "dubious operations", such as money
laundering, the central bank said in a statement.
Both banks are part of Russia's system of retail deposit
insurance, under which the state guarantees small savings if a
bank fails. Last year, the withdrawal of Master Bank's licence
cost the state about 30 billion roubles ($890 million).